China's factory activity weakest in more than four years
(MENAFN- Kuwait News Agency (KUNA)) TOKYO March 1 (KUNA) -- China's manufacturing activity slowed to the lowest level in more than four years in February government survey showed Tuesday.The official manufacturing Purchasing Managers Index (PMI) fell to 49.0 on a 100-point scale last month down from 49.4 in January the National Bureau of Statistics and the China Federation of Logistics and Purchasing said.The index was below the key 50 percent line for the seventh straight month and the weakest since November 2011. A PMI reading above 50 percent indicates growth from the previous month while a reading below 50 represents contraction in China's manufacturing sector.The PMI is a closely watched by investors as a barometer of China's economic health.Bureau statistician Zhao Qinghe attributed the retreat to slowing factory activity during the Chinese New Year holidays in early February as well as the trimming of industrial capacity according to state-run Xinhua News Agency.The negative index also showed a sign of persistent economic weakness as China is seeking new economic growth engines amid a campaign to cut industrial overcapacity the report said.Separately Caixin Media Co. and research firm Markit separately said its own final PMI for February also shrank to 48.0 from January's final reading of 48.4.The Caixin PMI fell below 50 for the 12th month in a row. The official PMI is weighted towards bigger and state-owned firms while the Caixin survey focuses more on smaller manufacturers in the private sector.The world's second-biggest economy grew 6.9 percent in 2015 on the year the slowest annual expansion in 25 years. To boost economic growth China's central bank announced on Monday that it will cut its reserve requirement ratio for commercial banks by 0.5 percentage points to to 17.0 percent starting from Tuesday. (end) mk.tg
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